The paper "Logistics Management and Logistics Outsourcing Relationships" is a perfect example of a Management Essay. According to Susan Mallik (2010 Managing transport is very important in logistics. The interface between transportation systems and logistics systems can be described in terms of nodes and modes. First, there is an aspect of warehousing, sorting, goods handling, processing, among others, then there is the aspect of transportation services and needs. The role of transportation services in freight movement includes the physical movement of goods and services along the logistic chain. In this case, the movement of 50 large subassemblies from the manufacturing site in Hanjin Shipyard, Philippines to Large Natural Liquid Gas in Curtis Island, Queensland, Australia.
Moving these goods along the logistics chain ensures that all logistic utilities are achieved. This includes place (where), Time (when), and Form utility for customer satisfaction. While transporting subassemblies from the manufacturing site to the final destination, there are factors that must be considered. Some work against while others work. For instance, globalization lengthens the physical distance and cost information, technology and communication. This facilitates the flow of information through the transport chain.
This will influence the speed of flow. Political factors integrate markets that facilitate easy transportation but put in place a barrier to transportation via the varying legislations. Some of the countries in which the subassemblies must pass through may dictate the legislation ranging from environmental, degradation, competition, use of green materials, promoting innovation and driving down margins among others. Deciding on the viable mode of transport is quite technical. Many factors may affect the choice of transportation. For instance, dwindling natural resources may constrain the mode of transport to other alternative sources like seeking water supply; similarly, fossil fuel rise in economic power blocs has shifted the balance of economic power which impacts the political dynamics since there have been realignments in economic resource flow.
These economic powers include China, South Africa, Brazil and the Asia Tigers among others. The transport logistics must also take into consideration natural disasters like earthquakes, typhoons, floods, drought, and tsunamis among others to avoid some routes. The sub-assemblies should only be ferried through places that have the least probability of such natural disasters because they are uncontrollable. The transportation modes may be categorized into the sea, Road, Air, Rail, and Water transport.
The selected mode of transport must be one that will ensure the safe delivery of the goods and in a timely manner. The choice of carrier looks at the speed of delivery, avoidance of damages, timing, freedom from interruption, avoidance of loss through pilferage, the impact of ancillary services and quality. From Hanjin Shipyard (2007), the heavy subassemblies may be transported by bulk carriers if they weigh between 135,000 tones to 205,000 tones, or by container ships if they weigh between 4300 TEUS to 12,800 TEUS.
Hanjin Shipyard has the capability of transporting heavy materials over a long distance. It currently focusses on large container ships, tankers and bulk carriers. It has manufactured high-technology/ value-added vessels which reduce the risks involved during transportation. The convenient mode of transport from the Philippines to Australia will be sea transport. This is because the weight of the materials might make it dangerous to use air transport. Furthermore, sea transport is cost effective.
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